Elior lowers 2025 revenue growth guidance

Elior SA

21/05/2025 17:30

May 21 (Reuters) - French food caterer Elior ELIOR.PA lowered its organic revenue growth guidance for 2025 on Wednesday, citing a focus on profitability.

The group forecast organic revenue growth of between 1% and 2%, down from a previous estimate of between 3% and 5%.

It also sees an adjusted core profit (EBITA) margin of between 3.3% and 3.6%, compared to above 3% in its previous guidance.

Analysts in a consensus poll provided by Elior expect an average of 3.3% for the fiscal year.

"Elior Group's results for the first half of fiscal 2024-2025 clearly show how the strategy we've been implementing since 2023 is the right one – namely putting the profitability of our business at the top of our priorities," CEO Daniel Derichebourg said in a statement.

Elior, which supplies catering services to businesses, schools, prisons, hospitals and care homes, posted a jump in net profit to 43 million euros ($49 million)in the first half from 1 million euros last year

The group has been rationalising its portfolio since April 2023 through voluntary withdrawals from loss-making contracts and business expansion elsewhere.

Its adjusted earnings before interest, taxes, and amortisation (EBITA) rose 32% to 132 million euros between October 2024 and March 2025, compared with 100 million a year earlier.

Analysts were expecting 121 million euros on average, a consensus poll provided by Elior showed.

($1 = 0.8822 euros)

($1 = 0.8817 euros)

 (Reporting by Dimitri  Rhodes)

 ((Dimitri.Rhodes@thomsonreuters.com;))